Ethereum ETF Issuers Eye Staking Approval

With Ether exchange-traded fund (ETF) issuers expressing optimism about obtaining clearance for staking-focused products, the Ethereum ecosystem may soon see a revolutionary regulatory move. In a recent interview with Cointelegraph, Joe Lubin, the co-founder of Ethereum and the creator of Consensys, revealed these revelations.

Advancements in ETF Staking

“We’ve been in discussions with the ETF providers, and they’re already working hard on that, so they expect that to be greenlit reasonably soon,” Lubin stated, referring to ETFs offering staked Ether (ETH).

According to reports, fund issuers are creating tools to help their clients understand the nuances of staking. According to Lubin, these initiatives are essential to enhancing the Ethereum ecosystem:

“I think it’s going to be great for the technology and the ecosystem because they are leaning in to enable us to — as an ecosystem — do a better, more robust, more diversified job.”

The Future of Spot Ether ETFs

Nine products will begin in July 2024 after the U.S. Securities and Exchange Commission (SEC) approved spot Ether ETFs last year. These funds have received inflows totaling about $2.7 billion, despite starting off more slowly than Bitcoin ETFs.

Staked Ether ETFs have not yet received SEC approval, though. This could soon change, according to analysts and industry insiders, particularly under Commissioner Hester Peirce’s leadership as a strong supporter of the cryptocurrency industry.

Task Force of the SEC and Industry Hope

The creation of a crypto task force aimed at creating a regulatory framework for digital assets was announced by the SEC on January 21. The endeavor will be led by Commissioner Hester Peirce, who is well-known for her support of cryptocurrency.

In an interview with Coinage in December, Peirce hinted to a possible change inside the SEC, pointing out that staking ETF approval may be facilitated by a majority of Commissioners who support the idea:

“If it changes from a majority of Commissioners who don’t want things to go through to a majority of Commissioners who do want things to go through, then yeah, it’s easier,” she said.

Leaders in the Industry Offer Their Opinions

The SEC’s initiative under Peirce’s direction was praised by Young Ko, the former CFO of Polygon, who said that her knowledge of blockchain technology and assistance for builders might spur advancement:

“She has publicly said ETFs should be able to stake for yield,”

Ko remarked, emphasizing the potential benefits for the broader Ethereum ecosystem.

This view was supported by Bernstein Research, which forecast that ETH staking yield ETFs will probably be approved given the SEC’s changing position on cryptocurrencies.

According to Beaconcha.in, there are currently over 33.7 million ETH staked, which is equivalent to about $113 billion and accounts for 28% of the entire Ethereum supply. The approval of staking ETFs might strengthen Ethereum’s status as the leading blockchain network and open up new avenues for institutional investors

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